Azad Engineering (AZAD) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly financial performance in Q1 FY26, with standalone revenue of ₹1,345.1 million (INR 135 crores), up 36.7% year-over-year and 8% sequentially, driven by strong growth in Energy & Oil & Gas (+41.7% YoY) and Aerospace & Defence (+26.3% YoY) segments.

• EBITDA margin improved to 36.1% in Q1 FY26 from 33.6% in Q1 FY25; PAT margin rose to 22.3% from 17.4% year-over-year.

• Strong order book exceeding ₹60 billion (INR 6,000 crores), providing multi-year revenue visibility across energy, aerospace & defense, and oil & gas segments.

• Ongoing capacity expansion with two new lean factories inaugurated and plans for eight total facilities, including a world-class forging plant.

• Export revenue remains dominant at 92% for Q1 FY26, with sales in 12 countries and long-term relationships with major OEMs.

Financial highlights

• Standalone revenue from operations for Q1 FY26 was ₹1,345.1 million, up 36.7% year-over-year and 8% sequentially.

• EBITDA for the quarter at ₹485.1 million, up 46.8% year-over-year; EBITDA margin at 36.1%.

• PAT for the quarter at ₹299.9 million, PAT margin at 22.3%, up from 17.4% in Q1 FY25.

• Basic and diluted EPS (standalone) for Q1 FY26 were ₹4.64 and ₹4.54, respectively.

• Employee costs increased due to onboarding of key personnel for growth.

Outlook and guidance

• Reiterated top-line growth guidance of 25%-30% for FY26, with internal targets potentially higher.

• FY26 expected to be a year of consolidation and stabilization, with systematic ramp-up of new facilities.

• CapEx deployment of ₹4,500 million planned for FY26, mainly for capacity expansion.

• Expectation of stronger growth in subsequent years as new facilities stabilize.

• Subsidiaries acquired last year have turned EBITDA neutral and are expected to be PAT positive by Q4 FY26.